Riverside County Grand Jury
• 2002-2003
The Palo Verde Healthcare District and Association
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 9 findings
F1
The District and Association have different organizational structures and constituents, and are chartered under different state codes. District board members were not elected to the Association Board in accordance with Association bylaws.
No recommendations for this finding
F2
Since the resignation of its board in February 1992, the Association has had no elected directors. The District Directors have acted as agents for the Association since that date. The agreement indicated that the agency was intended to be only for a transitional period of time.
Related Recommendations (2)
R2
A meeting of the Association members be convened by the District board (as agent) to approve or disapprove the conveyance of the hospital to the District and to elect a board of directors in accordance with its bylaws.
R3
If the conveyance is approved, the paperwork should be completed to transfer title to the District and the board should consider the possibility of dissolving the Association. If the conveyance is not approved, the appointment of the District as agent for the Association should be revoked.
F3
The Association is still recorded as the owner of the hospital.
No recommendations for this finding
F4
The terms of the original lease required Brim, Inc. to pay a special one-time payment of up to $400,000 toward the liabilities of the Association.
No recommendations for this finding
F5
The District receives annual tax revenue of approximately $60,000 plus about $8,000 from the Blythe Redevelopment Agency. After paying District expenses, the balance is used for hospital maintenance and capital improvement.
No recommendations for this finding
F6
Contact from constituents of both the District and Association is difficult because neither has a permanent office or telephone.
Related Recommendations (2)
R4
Minutes and fiscal records be kept current and retained in good order at a permanent location.
R5
The Association and the District maintain separate mailing addresses and telephone systems for contact by the public. 3
F7
The renewal of the lease in 2001 was signed by the District board president acting as agent for the Association. No board gave any District board member the authority to sign the lease agreement, which raised a question as to its legality.
Related Recommendations (1)
R1
Legal opinion be obtained to determine the validity of the renewed lease and to suggest solutions to the current issues under contention.
F8
Interviews with several former and current District board and Association members revealed that they are unaware of the Association’s mortgage, its balance, debt service, or even the name of the lien holder. 2
No recommendations for this finding
F9
PHC is paying $103,000 a year to the lien holder on an unpaid balance of slightly more than $1,170,000. The five percent loan is currently being reduced by about $40,000 per year. At the current rate of pay down, the Association will be in debt for approximately 17 more years.
No recommendations for this finding